SEBI settles MPS violation case against four Adani Group companies

SEBI examined whether investments made by two foreign portfolio investors (FPIs) were genuinely independent public shareholding or were controlled by Mr. Vinod Adani, thereby misrepresenting the companies' public float.

Who it concerns: Adani Enterprises Limited, Adani Power Limited, Adani Ports and Special Economic Zone Limited, Adani Transmission Limited, Mr. Vinod Adani, Mr. Nasser Ali Shaban Ahli, Mr. Chang Chung-Ling, Lingo Investment Ltd., Gulf Asia Trade & Investment Ltd., Gulf Arij Trading FZE, Mr. Tejal Ramanlal Desai, Global Macro Asset Management, Emerging India Focus Funds, Mr. Pranav Vora, Mr. Dharmesh Parikh, Opal Investments Private Limited, and other listed noticees including Mr. Gautam S. Adani and Mr. Rajesh S. Adani.

What SEBI found or ordered

• SEBI alleged that investments by FPIs Emerging India Focus Funds (EIFF) and EM Resurgent Fund (EMR) in Adani Group companies (June 2013 to June 2018) were controlled by Mr. Vinod Adani and funded by connected persons, thus constituting promoter shareholding rather than public shareholding.
• SEBI alleged that the investment structure involved Global Opportunities Fund Limited (GOFL) and four underlying investors (Gulf Asia, Lingo, Gulf Arij, Mid-East) who were not acting independently.
• SEBI alleged that Excel Investment Advisory Services Limited, controlled by Mr. Vinod Adani, advised Global Macro Asset Management Limited (GMAML) on these investments, effectively directing the decisions.
• The proceedings concerning Noticees 13-30 (including the four Adani companies and several individuals) were settled under SEBI (Settlement Proceedings) Regulations, 2018.
• The order addresses allegations of violation of Rule 19A of SCRR, Regulation 38 of LODR Regulations, and Regulations 3 and 4 of PFUTP Regulations.

Also in the document

• The order notes that the investigation did not allege that Mr. Vinod Adani was the beneficial owner of the investments, only that he controlled them.
• The alleged period of violation is limited to June 2013 to June 2018, after which the FPIs were not found to be holding the shares.
• The order mentions that the proceedings for the companies and several individuals were settled, implying a financial settlement was reached for those specific parties.